My quick take on the Federal Reserve's bailout loan to financial giant AIG is that once again we are continuing our jouney into phony capitalism. The Republicans especially and the Democrats in kind, speak about the virtues of the free market until that independence means big losses to too many people's portfolios or the "wrong" people.
Now I believe in a regulated form of capitalism that is championed by mainstream democrats, but the question is: when did the Republicans admit they were Democrats?
We need a vigorous debate in our country in terms of how to design and implement the best economic system. Whenever the discussion is general, there is robust disagreement. Yet, in times of a crisis, both and all sides seem to favor government intervention to a large degree.
John McCain bragged about being a "deregulator" earlier in the campaign. I'm sure when he was trying to secure more conservative voters.
But now, McCain and Obama will probably sing from a similar hymm book. The moderate - liberal Democratic handbook.
It should be noticed.
In the future, we should develop a system where a risk whether taken by a financial giant or a single individual has 2 possible outcomes, and that the government won't bailout either bad judgement or bad luck.
The way capitalism works is through creative destruction. But if the government constantly tries to prevent the destruction of the old , the bad, or the unproductive, then we suffer as a nation.
We should constanly be vigilant to help those truly in need, but realize we could help even more people by creating as much prosperity as possible.
making the word "liberal" safe again!